Turkish economy grows 2.3% yr-on-yr in Q2, below forecast

Turkey's economy expanded by 2.3% year-on-year in the second quarter, according to official data released on Monday, falling short of forecasts. Growth slowed for the fourth consecutive quarter, with the second-quarter gross domestic product (GDP) growing 1.1% from the previous quarter after adjusting for seasonal and calendar variations, data from the Turkish Statistical Institute revealed.

The Reuters poll estimated that economic growth in the second quarter was 2.9%, while it was projected to expand by 3.05% in 2026. The agriculture, forestry, and fishing sectors showed the strongest growth, with an expansion of 13.3%, while information and communication grew by 8.6%. Growth for 2025 was revised upward to 3.7% from 3.6%, and first-quarter growth was revised to 2.6% from 2.5%.

The government's medium-term program projected growth of 3.8% in 2026, with a new medium-term program set to be announced on September 7.